2007 Annual report - Groupe M6

financial accounts
notes to the consolidated financial statements
n OPTIONS AVAILABLE AND USED BY M6 GROUP IN RELATION TO THE AC-
COUNTING FRAMEWORK
Some of the international accounting standards allow options relating to the valuation and
accounting treatment of assets and liabilities. The options utilised by the Group are detailed
in note 3.6.
Furthermore, IFRS 1 First-time adoption of IFRS, relating to the first time application of the
international reporting framework, allows options in respect of the retrospective application
of IFRS at the date of transition (1 January 2004) for the Group. In this regard, the Group
has used the following options:
- business combinations prior to 1 January 2004 have not been restated in accordance
with IFRS 3 - Business Combinations ;
- IAS 39 has been applied retrospectively as from 1 January 2004;
- the measurement of benefits granted to employees in the context of share-based
remuneration takes into account only those plans established since 7 November 2002.
3.2
Change in accounting methods
The Group retained the option provided by IAS 19 – Actuarial gains and losses, group
plans and disclosures, to stop using the «corridor» method and recognise instead actuarial
gains and losses resulting from changes in actuarial assumptions directly under equity.
Actuarial gains and losses recognised under equity are part of the statement of recognised
income and expense (SoRIE), as presented in the Equity section.
Under IAS 8 – Accounting policies, changes in accounting estimates and errors, an entity
may only change its accounting policy if the change results in the financial statements
providing more reliable and relevant information on the effects of transactions, other events
or conditions on the financial position, financial performance or cash flow of the entity.
The Group, following the IASB’s recommendation, considers that the option provided by
IAS 19 does provide the option of choosing a simpler and more transparent method than
the method previously used to present retirement commitment liabilities.
3.3
Preparation principles
The consolidated financial statements were prepared in accordance with the historical cost
convention, with the exception of derivative instruments and available-for-sale financial assets,
which are accounted for at fair value.
Financial liabilities are valued at amortised cost. The book value of assets and liabilities
recognised on the balance sheet and which are subject to a Fair Value Hedge are adjusted to
recognise variations in the fair value of the hedged risks.
M6 GROUP - 2007 annual report
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